On Wednesday, South Korea, the first country to pass a law banning the payment regulations of technology companies, is expected to make public the initial details of what is sufficient to comply with the law.
Apple Inc. and Google Alphabet are not enough to comply with a South Korean law that prohibits powerful app store operators from forcing app developers to use their payment systems, a lawyer who led the reform told Reuters.
South Korea, the first country to pass a law banning the payment regulations of technology companies, is expected to make public the first details of what it needs to comply with the law on Thursday, an official at the Communications Commission said. Korea (KCC) said.
He amended the Communications Trade Act in August to try to curb the market power of technology majors and stop big app store operators from charging commissions on in-app purchases.
The law begins in September but details of what will be compliant are presented by the KCC in the implementation law.
Apple has told the South Korean government that it is already committed and does not need to change its storefront policy. Google says it plans to allow third-party payment systems in South Korea, but will reduce its service charge to developers by 4 percent when users choose an alternative payment plan.
Technology companies charge developers about 30% of their sales in in-app transactions.
“Obviously, we are not satisfied… Apple’s claim that complying is nonsense,” said lawmaker Jo Seoung-lae who spearheaded the amendments.
“Excessive tariffs are taking away the founders’ lives for innovation. They have to tell the legislature closely how the government is implementing information systems to ensure accountability,” Jo said.
Apple and Google did not immediately respond to requests for comment.